How do we participate in the market as producers and consumers? Explain with three examples.
WE participate in the market as producers and consumers.
As a producer of goods and services, we could be in any of the economic sectors such as, agriculture industry and services.
- A farmer produces various agricultural products and sell his products as producer to the trader or sugar mill or flour mill.
- Take other example, a farmer sells wheat to a flour mill. The man at the mill grinds the wheat and sells the flour to a biscuit company. The biscuit company uses flour, sugar and oil to make biscuits. It sells the biscuits in the market to the consumer. In all these stages one who is involved comes under the categoiy of producer.
As a consumers, we participate in the market when we purchase goods and services that we need. From early morning till late night, we use different items which are not produced by us. It may be tea, milk, sugar, biscuits or bread for breakfast but we need all these things. We purchase them from market. In this way, we participate in the market as consumer.